Uncovering Costco's Pricing Secrets: A Guide for Amazon Sellers
When it comes to selling on Amazon, resellers like us are always on the lookout for untapped sources of profitable products. Club stores, such as Costco, are just that.
Renowned for its thin profit margins and exclusive product sizes, Costco can offer a goldmine of reselling opportunities that can supercharge your Amazon catalog.
In order to maximize the opportunity that products from Costco can offer you, it is important to understand their pricing strategies. Costco uses a unique system of price tags to indicate various types of discounts and product statuses. In this blog post, we'll explore the different price tags used by Costco and their meanings, helping you make better informed decisions and add more profit to your bottom line.
These are the standard things to look out for on Costco’s price tags:
1. Items ending in .99
Items ending in .99 are typically regular priced items that are not on sale. With that being said, do not disregard full priced items. Many of them can still be very viable to sell on Amazon.
Pro tip 1: Check the Keepa graph on Amazon. Price dips and recoveries can often correlate to when items were on sale at Costco and the supply increased on Amazon. If items are not profitable right now but are at the higher average selling price, set yourself a Keepa alert to be notified when the selling price is on the upswing.
2. Items ending in .97
When a Costco price tag ends in .97, it indicates that the item is on clearance. These products are typically discounted to make room for new inventory or to clear out seasonal items. As an Amazon seller, clearance items can be a great opportunity to source products at a lower cost, potentially increasing your profit margins. Keep in mind that clearance items may be store-specific and/or may differ from province to province.
3. Items ending in .49 or .79
From what we understand, price tags ending in .49 or .79 are manufacturers special offers. These are items that are relatively new to Costco and are having a trial run to see how they will perform & are typically priced a bit lower than their regular retail price.
4. Items ending in .88 or .00
Items with a price tag ending in .88 or .00 are typically manager’s discounts. These products have been discounted at the discretion of the store manager, often due to overstock or slow-moving inventory. Like clearance items, manager's discounts can provide Amazon sellers with an opportunity to source products at a lower cost. However, these discounts are typically store-specific, so it's important to check multiple Costco locations for the best deals.
We’ve found that in most cases, manager discounts tend to offer some of the lowest pricing available especially when they are coupled with an asterisk (explained below).
5. Price tags with an asterisk (*) in the corner
A price tag with an asterisk (*) signifies that the item is discontinued and will not be restocked. While this may not necessarily indicate a discount, it can provide valuable information for Amazon sellers. Discontinued items may become harder to find, potentially increasing their value on the Amazon marketplace. If you can source these products at a reasonable cost, you may be able to capitalize on their scarcity and demand.
Keep in mind that just because the item is being discontinued at one store, does not mean that it will be discontinued at all Costco stores or will never return.
Pro tip 2: If you want to increase sourcing efficiency at Costco, I would recommend using websites such as cocowest.ca and cocoeast.ca.
These are fan run blog sites where individuals go in store and take pictures of all of the items Costco has on sale that week.
Utilizing websites like this can save you from having to take pictures and source in store. Using sites like this, you can also make fairly accurate predictions on when specific items will go on sale again based on the previous sale history.
Remember, while these insights are based on our personal observations and industry knowledge, pricing policies may vary across locations and time. To ensure you stay ahead of the game, always check with your local Costco store for the latest and most accurate information on their pricing and clearance policies.
Now, armed with this newfound knowledge, venture forth and conquer the aisles with confidence, knowing that you hold the key to extraordinary savings & profits at Costco!
